Are African Countries Still Paying Colonial Tax?

Colonialism may have officially ended decades ago, but its shadow still lingers over Africa. This controversial “colonial tax,” is a system where some African nations, primarily former French colonies, send a portion of their income to France. 

This arrangement, established during colonial times, continues through agreements signed at independence.

How does colonial tax work?

The colonial tax system allows France to control and claim as much as 85% of the annual earnings of its former colonies. These countries must deposit their foreign currency reserves into France’s central bank. 

If they want to access this money, they can only withdraw up to 20% at a time, often as loans. Requesting additional funds requires approval, which France can deny.

France defends this system by arguing that it reimburses the cost of infrastructure and administration provided during colonial rule. Critics, however, call it a form of exploitation that keeps African nations under economic control, preventing real independence.

Consequences of non-Compliance

When African leaders attempt to reject these payments, they often face severe consequences, including political instability and coups. This history has discouraged many countries from challenging the system openly.

Which countries are Affected?

Benin
Benin, formerly known as Dahomey, achieved independence in 1960 but continues to pay colonial tax. Critics argue this drains the country’s resources, stifling development efforts like better schools and healthcare.

Burkina Faso
Burkina Faso, previously Upper Volta, also gained independence in 1960. Yet, it remains tied to France through the CFA franc currency system, sending a significant part of its reserves to France’s central bank.

Côte d’Ivoire
Côte d’Ivoire, despite being one of Africa’s economic powerhouses, is deeply involved in the colonial tax system. Many believe this financial dependence hampers its ability to fully thrive.

Guinea
Guinea famously broke away from France in 1958, demanding complete autonomy. In retaliation, France removed its resources and destroyed infrastructure. Although Guinea remains outside the CFA franc system, the struggle for true financial independence continues.

Mali
Mali, a landlocked and impoverished nation, also remains part of the CFA franc system. The payments to France deprive Mali of funds that could be used for economic growth and poverty reduction.

Niger
Niger, rich in uranium that powers France’s nuclear energy, is ironically one of the poorest countries in the world. Its financial dependence on France keeps it trapped in a cycle of poverty.

Senegal
Senegal is often praised for its political stability, but it too remains bound by the colonial tax system and the CFA franc. This dependency hinders its progress toward financial independence.

Togo
Togo, a small but resource-rich country, continues to use the CFA franc and sends payments to France. Critics believe these payments prevent the country from unlocking its full potential.

Cameroon
Cameroon has a unique colonial history, having been ruled by both France and Britain. Today, it still pays colonial tax to France, which affects its ability to invest in local development.

Chad
Chad, despite its wealth in oil and natural resources, is one of the world’s poorest nations. Much of its earnings flow to France through colonial tax payments and the CFA franc system.

Why does this persist?

The continuation of colonial tax is a reflection of the uneven power dynamics that linger from the colonial era. 

France has maintained economic control by embedding these systems into agreements, making it difficult for African nations to escape them without severe repercussions.

The colonial tax system has sparked debates about justice and fairness. Many believe that for Africa to achieve true independence, these countries must renegotiate or entirely eliminate such agreements. 

However, this requires collective action and global support to overcome the economic and political hurdles.

African countries paying colonial tax is a reality that calls for urgent change. These nations deserve the freedom to use their resources for their own development and to chart a future free from the shadows of colonialism.